Greetings and welcome to the Mannatech Incorporated Fourth Quarter 2008 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. It is now my please to introduce your host, Gary Spinell, Vice President of Finance and Administration. Thank you Mr. Spinell, you may now begin.

Thank you and good morning everyone. This is Gary Spinell and welcome to Mannatech's fourth quarter 2008, earnings call. Before we begin the call, I will first read the Safe Harbor statement. During this conference call, we may make forward-looking statements which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminology such as will continue, may, believe, intend, expects, potential, should and plan or other similar words or the negative of such terminology. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties and other factors that speak only as of today. We also refer our listeners to review our SEC submission. Thank you, and now I will now turn the call over to Mr. Wayne Badovinus, Mannatech’s President and CEO.

Hello and good morning to everyone. This is Wayne Badovinus, President and CEO of Mannatech. It is a pleasure to be here to update you on the progress we are making at our company. We have made significant and tangible strides in reshaping our business. In spite of the extremely difficult worldwide economy we are seeing indications of excitement and momentum building from our Associates. Our fourth quarter launch of Osolean our unique fat loss product has been a very real success. In addition, in late January we launched our version of an economic stimulus plan. The ESP plan as we call it provides a lower product at costs or new associates entering the business. We also continue to aggressively manage our expense levels, and as announced at the end of February we are pleased to have reached a settlement with the Texas Attorney General and have that large distraction behind us. As we reported we generated an operating profit of $4.6 million for the fourth quarter of 2008. This is the second quarter operating profit in a row and larger than, our third quarter 2008 operating profit. We reported net income in the fourth quarter of $620,000 or $0.02 per diluted share. This compares to a net loss of $3.6 million or $0.13 per diluted share for the fourth quarter of 2007. We recorded pre tax income of $2.2 million in the quarter compared to pre tax loss of $4.7 million for last years fourth quarter. Operating profit and net income were positively impacted by a partial reversal of litigation expense accrual. However, we have again made progress on the bottom-line compared to prior quarters of 2008. This progress was primarily achieved through the control of all expense categories. A culture of expense accountability is taking hold throughout the…

Thank you, Wayne and good morning everyone. Our fourth quarter operating results were positive at $4.7 million. However, as Wayne mentioned and as we pointed out in our earnings press release and the 10-K the settlement with the Texas Attorney General resulted in a partial reversal of the litigation accrual which had been set up in the earlier quarters. The approval was reduced by more than $5 million in the fourth quarter, lowering our overhead expense to $26.9 million and was instrumental in the amount of our operating profit. The other income and expense section below the operating profit line was a deficit of almost $2.9 million in the fourth quarter due to the extremely low currency exchange rates we encountered in the quarter. The Australian dollar, the New Zealand dollar and the Korean Won weakened against the US dollar as the global financial prices swept across the world. These unfavorable exchange rates also impacted our sales line as fairly healthy foreign sales trends and strong introduction of our Osolean product to translated back into US dollars at historically low rates. When compared to the exchange rates in the second quarter of 2008, the rate changes cost us up to $2 million per month in reported sales volume. Without the tremendously reduced exchange rates we believe our operating results would have been more favorable reflecting the actual business trends in the local currencies of our Australian and Korean markets. Mannatech has been focused on bringing our operating expenses in to tight control, and our fourth quarter expenses were the lowest in years. Even when corrected for the litigation accrual, we were under the third quarter of 2008 by about $1 million. And the 2008 fourth quarter was below the year earlier 2007 fourth quarter by $10 million, or almost 24%.…

Thank you, Steve. From our first meeting last July or last August, I tried to provide you with a roadmap for Mannatech's future. The roadmap included specific goals that we intended to achieve. Today you have seen that another goal has been achieved as we generated our first quarterly net income in over a year. I am clearly aware more challenges lie ahead. For now what we told you would be accomplished, has been accomplished. As you know turnarounds do not occur overnight, particularly in these difficult economic conditions and Mannatech is in the middle of a turnaround. But be certain that we are moving through the turnaround with a pragmatic, consistent and deliberate approach that has already proven to yield positive results. We are seeing signs that the business is in fact being revitalized. We see recruiting improvements and sales growth in our future. We remain incredibly excited and encouraged about the future of our business. This is a new day and a new time for Mannatech and as you have seen we have successfully completed the first step in our journey. And now we will be happy to take your questions.

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Thank you. Our first question is coming from Dan Mendoza of Agincourt Capital.

Hi, I had a couple of questions. Can you talk a little bit about what your recruitment goals are for 2009? What would constitute success for --

If there are no questions we will conclude the conference call.

Hello.

Thank you all very much.

Okay.

This concludes today's teleconference; you may disconnect your line at this time. Thank you for your participation.